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TriOil Resources Ltd. announces record first quarter 2013 results

CALGARY, May 21, 2013 /CNW/ - TriOil Resources Ltd. ("TriOil" or the
"Company" - TSXV:TOL) is pleased to announce that it has filed its
financial statements and related Management's Discussion and Analysis
("MD&A") for the three months ended March 31, 2013 on SEDAR. Selected
financial and operational information is outlined below and should be
read in conjunction with TriOil's audited financial statements and
related MD&A, available for review at www.trioilresources.com and www.sedar.com.

Highlights

Achieved record average production of 3,472 BOE per day in Q1 2013. This
represents strong organic growth of 117 percent over Q1 2012 production
of 1,602 BOE per day and a significant 23 percent increase over Q4 2012
production of 2,821 BOE per day.

Increased April average production to a record 4,000 BOE per day (62
percent oil and NGL's) (based on field estimates), with additional
Kaybob wells brought on production during May and additional Lochend
wells waiting to be brought on production post break-up. TriOil is on
track to deliver a strong Q2 2013 and to meet or exceed its 2013
guidance.

Increased funds from operations by 149 percent to a record $10.5 million
in Q1 2013 from $4.2 million in Q1 2012 and by 19 percent from the $8.8
million generated in Q4 2012.

Continued to deliver strong per share growth. Q1 2013 cash flow of $0.16
per share is up 78 percent from $0.09 per share in Q1 2012 and up 14
percent from $0.14 per share in Q4 2012.

Achieved net earnings of $2.5 million ($0.04 per share) in Q1 2013
compared to a net loss of $0.3 million ($0.01 per share) in Q1 2012.

Generated a strong operating netback of $38.65 per BOE in Q1 2013.

Decreased operating expenses by 27 percent to $10.81 per BOE in Q1 2013
from $14.91 in Q1 2012 and by 8 percent from $11.73 per BOE in Q4 2012.

The Company's credit facilities were expanded by $20 million to $90
million during the quarter.

Financial and Operating Results

Three months ended March 31,

2013

2012

% Change

($000s, except per share numbers)

Financial

Total petroleum and natural gas sales

18,064

9,587

88

Funds from operations (1)

10,486

4,219

149

Per share - diluted

0.16

0.09

78

Net income (loss)

2,513

(343)

(833)

Per share - basic and diluted

0.04

(0.01)

-

Net debt (working capital) (2)

60,483

(15,637)

-

Total assets

298,414

209,515

42

Capital expenditures(3)

47,276

32,142

47

Weighted average shares outstanding

Basic

63,982

45,090

42

Diluted

64,034

45,263

41

Operating

Average daily production

Crude oil and NGLs (bbls/d)

2,040

1,114

83

Natural gas (mcf/d)

8,593

2,926

194

Total (boe/d)

3,472

1,602

117

Average sales prices

Crude oil and NGLs ($/bbl)

83.69

88.45

(5)

Natural gas ($/mcf)

3.49

2.32

50

Total ($/boe)

57.81

65.76

(12)

Wells drilled - gross (net)

13(9.1)

9(5.5)

-

Drilling success rate (%)

100

100

-

Operating netback ($/boe)

Oil and natural gas sales

57.81

65.76

(12)

Realized gain (loss) on derivative contracts

1.70

(3.88)

-

Royalties

(8.69)

(10.62)

(18)

Operating costs

(10.81)

(14.91)

(27)

Transportation

(1.36)

(1.38)

(1)

Operating netback

38.65

34.97

11

Notes:

(1)

Funds from (used in) operations is a non-GAAP measure and is calculated
as cash flow from operating activities before the change in non-cash
working capital and abandonment expenditures.

Capital expenditures include additions to property, plant and equipment
and exploration and evaluation assets and property acquisitions and are
presented net of proceeds of disposals.

OPERATIONS UPDATE

TriOil conducted a very successful light oil development drilling
program in the first quarter. Field activity was focused at Kaybob
where we drilled 8 (5.8 net) wells and brought 3 (2.0 net) wells on
production at the end of the quarter, while Lochend operations were
limited to drilling 4 (2.7 net) wells with only 1 (1.0 net) well
brought on production late in the quarter due to very early March 1
road bans.

Kaybob Dunvegan

TriOil participated in the first modern horizontal multi-stage
completion well on the Kaybob Duvegan light oil play in late 2011. To
date we have drilled and completed a total of 28 horizontal oil wells
on the play and Kaybob has been a major factor in the Company's strong
per share reserve, production and cash flow growth over the past 18
months. Results to date from the first 20 Kaybob wells that TriOil
drilled and brought on production in 2011 and 2012 are set out below:

# wells

IP15 (% Oil & NGLs)

IP30 (% Oil & NGLs)

IP60 (% Oil & NGLs)

IP90 (% Oil & NGLs)

20

394 BOE/d (85%)

336 BOE/d (82%)

274 BOE/d (79%)

241 BOE/d (77%)

Year to date TriOil drilled 9 (6.7 net) wells at Kaybob, 8 (5.7 net) of
which have been completed and brought on production with the remaining
1 (1.0 net) well expected to be on production after breakup. Of the 9
wells drilled and brought on production in 2013, 7 (5.1 net) wells were
booked as proved undeveloped locations, 1 (0.6 net) well was assigned
probable reserves and 1 (1.0 net) well had no reserve booking in the
Company's year end 2012 reserve report.

TriOil is very pleased with the results of our 2013 Kaybob drilling
program, the early results of which are set out below:

Well

IP15 (% Oil & NGLs)

IP30 (% Oil & NGLs)

4-23

344 BOE/d (84%)

266 BOE/D (88%)

4-27

409 BOE/d (81%)

299 BOE/D) (87%)

9-22

387 BOE/d (92%)

4-34

346 BOE/d (89%)

304 BOE/d (89%)

12-27

448 BOE/d (88%)

391 BOE/d (88%)

5-34

493 BOE/d (89%)

4-3

509 BOE/d (93%)

12-34

524 BOE/d (87%)

Average

432 BOE/d (88%)

315 BOE/D (87%)

Kaybob continues to deliver top tier capital efficiencies with strong
netbacks of $53.53 per BOE in Q1 2013, a 16 percent increase from
$45.98 per BOE in 2012. The Company's drilling and completion costs
have improved to $3.4 million per well in 2013 from $4.1 million for
the first few wells on the play.

Capital spending in the first quarter of 2013 was heavily weighted to
Kaybob due to the March 1 road bans that curtailed field operations at
Lochend. Kaybob drilling activity in H2 2013 will be limited to 5 (3.1
net) wells as our capital program in the second half of the year will
be mainly focused at Lochend.

With a de-risked drilling inventory of 44 net wells at 4 wells per
section spacing, plus the added potential for enhanced recovery and
future downspacing, we expect that our Kaybob Dunvegan asset will
continue to deliver production growth for the Company for a number of
years.

Lochend Cardium

TriOil has built a significant land position, strong operational
presence and multi-year drilling inventory in the Cardium light oil
resource play at Lochend. The Company owns 98 (78 net) sections on the
play and has a current de-risked drilling inventory of approximately 90
net horizontal wells and a large undeveloped acreage position on the
expanding Lochend Cardium trend. TriOil has a 55% working interest and
operates a recently expanded 20 mmcf per day gas facility and owns a
22% interest in the recently expanded 7,000 bbl per day oil battery at
Lochend.

The Company has drilled and executed slick-water completions on a total
of 21 horizontal wells at Lochend since 2011 with strong results, as
set out below:

# wells

IP30 (% Oil & NGLs)

IP60 (% Oil & NGLs)

IP90 (% Oil & NGLs)

Central/West

15

302 BOE/d (76%)

268 BOE/d (73%)

237 BOE/d (70%)

East

6

180 BOE/d (89%)

151 BOE/d (88%)

135 BOE/d (84%)

First quarter 2013 drilling and completion activities were cut short by
very early road bans that came into effect March 1, 2013 due to
unseasonably mild weather. TriOil was limited to drilling 4 (2.7 net)
wells at Lochend with only 1 (1.0 net) well brought on stream late in
the quarter. Field conditions are looking very favorable at this time
and we expect to be back in the field in June.

TriOil, together with area operators, has invested significant capital
on the play over the past 15 months to expand the TriOil operated gas
facility to 20 mmcf per day and to construct and expand a 7,000 bbl per
day oil battery.

We have an active drilling and completion program planned for the second
half of the year at Lochend and expect to drill and complete 10 (5.2
net) horizontal wells prior to year end.

Pouce Coupe Montney

TriOil owns approximately 15.5 net sections in the Pouce
Coupe/Gordondale area that are prospective for both Upper and Lower
Montney. The Company drilled its first Lower Montney well on the play
in late 2012 and executed a newer multi-stage completion technique.
Results to date have exceeded our expectations as well as independent
engineering forecasts. The new well has produced at a stable rate of
approximately 3.8 mmcf per day and 30 bbls per mmcf of NGLs over its
initial 4 months of production and achieved an IP120 of 725 BOE per
day. To date the well has outperformed year end reserve estimates by
approximately 0.5 bcf and is producing at a higher than expected
liquids rate of approximately 30 bbls per mmcf.

We plan to monitor performance of our new liquids-rich Lower Montney
well together with the significant Lower Montney oil results and
drilling activity by a senior producer directly offsetting our Pouce
Coupe/Gordondale land block, with a view to adding a Lower Montney
horizontal well to the budget in the second half of 2013. TriOil has a
substantial drilling inventory of 90 (40 net) horizontal Montney
development wells at Pouce Coupe/Gordondale, 73 (30 net) of which are
unbooked.

Financial

TriOil posted record financial results for the first quarter of 2013,
primarily due to a 117 percent increase in production volumes over Q1
2012 and a 23 percent increase in production volumes over Q4 2012.
Funds from operations were $10.5 million or $0.16 per share compared to
$4.2 million or $0.09 per share Q1 2012 and $8.8 million or $0.14 per
share in Q4 2012.

The Company's operating netback of $38.65 per BOE decreased 4% from
$40.35 per BOE in Q4 2012 due to a 12 percent decrease in average sales
prices as a result of increased natural gas production from a
significant new gas well at Pouce Coupe, partially offset by an 8%
decrease in operating costs per BOE to $10.81 per BOE and a 41%
decrease in royalties per BOE.

In the first quarter of 2013, the Company spent $32.5 million on
drilling, completion and tie-in operations at Lochend and Kaybob, $3.2
million on a production facility expansion project at Lochend and major
pipeline infrastructure at Lochend and Kaybob and $10.9 million on a
strategic acquisition at Kaybob.

TriOil has established a strong commodity hedge position to help
stabilize forecast cash flow and to protect our capital program. We
currently have 1,700 bbls per day hedged at a fixed average price of
WTI Canadian $99.23 per bbl to year end 2013, 2,000 GJ per day hedged
at a fixed average price of AECO $3.46 per GJ to year end 2013 and 700
bbl per day hedged at a fixed average price of WTI Canadian $94.95 per
bbl for calendar 2014.

After posting record production of 3,472 BOE per day in Q1 2013, TriOil
reached a new high in April averaging 4,000 BOE per day (62 percent oil
& NGLs) (based on April field estimates) and is on track for a strong
second quarter. The Company is very well positioned to meet or exceed
its current guidance of 3,900-4,100 annual average and 4,400 exit 2013
production.

Strategic Alternatives Process Update

The previously announced strategic alternatives process is progressing
on schedule and as planned. Further updates in respect of the Company's
strategic alternative process will be made in due course. There can be
no assurances or guarantees that this process will result in an
acceptable transaction.

Shareholder Rights Plan

The Board has adopted an amended and restated shareholder rights plan
effective May 21, 2013 (the "Amended Rights Plan"). The Amended Rights Plan is substantially similar to the shareholder
rights plan adopted on effective February 22, 2013. The amendments
were implemented to allow for increased shareholder participation in
the context of an unsolicited bid and to comply with the requirements
of "new generation rights plans". The Amended Rights Plan was not
adopted in response to, or in anticipation of, any pending, threatened
or proposed acquisition or take-over bid.

The Amended Rights Plan remains designed to provide shareholders and the
Board with adequate time to consider and evaluate any unsolicited bid
made for the Company, to provide the Board with adequate time to
identify, develop and negotiate value-enhancing alternatives, if
considered appropriate, to any such unsolicited bid, to encourage the
fair treatment of shareholders in connection with any take-over bid for
the Company and to ensure that any proposed transaction is in the best
interests of the Company.

Shareholders Meeting

The Shareholders Meeting has been scheduled to be held on Tuesday, June
25, 2013 at 2:00 p.m. (Calgary time) at The Metropolitan Conference
Centre, 333 Fourth Ave S.W., Calgary, Alberta. Additional details of
the Shareholders Meeting, including the matters to be considered, are
included in the management information circular to be mailed to
shareholders and filed on SEDAR at www.sedar.com.

TriOil is a publicly traded junior oil resource player in Western
Canada. Substantial land positions have been acquired on early stage
light oil resource opportunities to capitalize on improvements in
horizontal drilling and multi-stage fracture stimulation technologies,
specifically targeting opportunities in the emerging Cardium and
Dunvegan oil trends in Alberta. TriOil has successfully executed its
business plan and has positioned the Company for solid growth in
production, reserves and shareholder value.

TriOil trades on the TSX Venture Exchange under the symbol "TOL". As of
May 21, 2013, there were approximately 64.0 million shares issued and
outstanding (70.0 million fully diluted).

Forward Looking Statements

This news release contains forward-looking information and
forward-looking statements within the meaning of applicable securities
laws. The use of any of the words "expect", "seek", "anticipate",
"continue", "estimate", "approximate", "believe", "plans", "intends",
"confident", "may", "objective", "ongoing", "will", "should",
"project", "predict", "potential", "targeting", "could", "would", and
similar expressions are intended to identify forward-looking
information. More particularly, this document contains forward looking
statements which include, but are not limited to, expected future
drilling and completion plans, expected capital expenditures, expected
production and reserves growth, expectations of TriOil delivering
strong, multi-year per share growth, timing of completion of the
Lochend oil Battery, expectations of the effect of drilling and
completion programs on productivity, recoveries and costs and the
future operations of TriOil.

The forward-looking statements contained in this document are based on
certain key expectations and assumptions made by TriOil, including with
respect to the anticipated exploration and development opportunities
and the outlook for the fiscal year ending December 31, 2013,
expectations and assumptions concerning the success of future
exploration and development activities, production guidance, the
performance of new wells and drilling and completion programs,
prevailing commodity prices and the availability of additional capital
if and when required by the Company.

Any references in this news release to initial day production rates
("IP"), including 30, 60, 90 and 120 day IP rates, are useful in
confirming the presence of hydrocarbons, however, such rates are not
necessarily indicative of long-term performance or ultimate recovery
and such rates are not determinative of the rates at which such wells
will continue production and decline thereafter. Additionally, such
rates may also include recovered "load oil" fluids used in well
completion stimulation. While encouraging, readers are cautioned not to
place reliance on such rates in calculating the aggregate production
for the Company. Additional details of the performance of the wells can
be found in the corporate presentation on the Company's website at www.trioilresources.com.

Although TriOil believes that the expectations and assumptions on which
the forward-looking statements are based are reasonable, undue reliance
should not be placed on the forward-looking statements because TriOil
can give no assurance that they will prove to be correct. Since
forward-looking statements address future events and conditions, by
their very nature they involve inherent risks and uncertainties. Actual
results could differ materially from those currently anticipated due to
a number of factors and risks. These include, but are not limited to,
the failure to satisfy the conditions to closing the transaction, risks
associated with the oil and gas industry in general (e.g., operational
risks in development, exploration and production; delays or changes in
plans with respect to exploration or development projects or capital
expenditures; the uncertainty of reserve estimates; the uncertainty of
estimates and projections relating to production, costs and expenses,
and health, safety and environmental risks), commodity price and
exchange rate fluctuations and uncertainties resulting from potential
delays or changes in plans with respect to exploration or development
projects or capital expenditures. Certain of these risks are set out in
more detail in TriOil's Annual Information Form which has been filed on
SEDAR and can be accessed at www.sedar.com and TriOil's other public disclosure documents which have been filed on
SEDAR and can be accessed at www.sedar.com.

The forward-looking statements contained in this press release are made
as of the date hereof and TriOil undertakes no obligation to update
publicly or revise any forward-looking statements or information,
whether as a result of new information, future events or otherwise,
unless so required by applicable securities laws.

Non-GAAP Measures

This document contains the terms "funds from operations", "net debt" and
"operating netback", which do not have a standardized meaning
prescribed by Canadian Generally Accepted Accounting Principles
("GAAP") and therefore may not be comparable with the calculation of
similar measures by other companies. Management uses funds from
operations to analyze operating performance and leverage. Management
believes "net debt" is a useful supplemental measure of the total
amount of current and long-term debt of the Company. Mark-to-market
risk management contracts are excluded from the net debt calculation.
Management believes "operating netback" is a useful supplemental
measure of the amount of revenues received after royalties and
operating and transportation costs. Additional information relating to
these non-GAAP measures, including the reconciliation between funds
from operations and cash flow from operating activities, can be found
in the MD&A.

Meaning of BOE

The term "BOE" may be misleading, particularly if used in isolation. A
BOE conversion of 6 Mcf:1 bbl is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead. Given that the value
ratio based on the current price of crude oil as compared to natural
gas is significantly different from the energy equivalency of 6:1,
utilizing a conversion on a 6:1 basis may be misleading as an
indication of value. All BOE conversions in this report are derived
from converting gas to oil in the ratio of six thousand cubic feet of
gas to one barrel of oil.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER
(AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.